Are There Mistakes in Your Credit Report?

If there are mistakes in your credit report, it could be costing you money. 

Credit errors can lower your credit score and in turn increase the interest rates you pay on loans and lines of credit as well as increase your insurance costs.

Here are some things to think about and some things you should do immediately to verify your credit report.

First, get your credit report.  The Fair Credit Reporting Act (FCRA) requires each of the nationwide credit reporting companies — Equifax, Experian, and TransUnion — to provide you with a free copy of your credit report, at your request, once every 12 months. Visit annualcreditreport.com or call 1-877-322-8228.  They will need your name, address, Social Security number, and date of birth. 

1) If your credit report error involves identity theft (you see credit card accounts you didn't open or loans you didn’t take out), call each of the three credit reporting bureaus (Equifax, Experian, and TransUnion) and ask them to put a fraud alert on your file. Then, fill out a Federal Trade Commission identity theft report and call the police to report the theft. The FTC and police reports help prove you had your identity stolen.

2) If you find errors on your report, complain.  The squeaky wheel gets the grease so don't let up. Grab a note book and a folder and get started disputing errors on your credit report. Call you credit card companies, your loan and mortgage companies and the credit bureaus.  Keeps notes. You are going to need proof of the errors so expect to provide copies of payments, receipts, dates of phone calls, etc)   Ask anyone that disagrees with you to provide evidence as to why.

Credit Bureau contact info:

Equifax:1-800-685-1111; equifax.com

Experian: 1-888-397-3742; experian.com

TransUnion: 1-800-916-8800; transunion.com

3) If all your efforts get you nowhere and you have your folder and notebook full of proof, here are three additional steps.

• Consider contacting your state attorney general’s office to see if they can offer any guidance.
• File a complaint with the Consumer Financial Protection Bureau. The bureau will look into your error and report back on what it finds.
• Complain to the Federal Trade Commission 1-877-FTC-HELP (1-877-382-4357)

Read More:
Mortgage Information |  Finances  |  View Homes for Sale  |  Find A Real Estate Agent  |  Random Videos and Information

Should You Use Your 401k to Buy A Home in the Twin Cities?

Is Your 401k  Better Spent on a Home?

Many people look at their 401k and they imagine all the things they could be doing now with that retirement money.  Using use this money for all the mounding credit card debt, school loans or even a home down payment often feels like the answer to life's immediate problems. But is it?

When it comes to home ownership, a 401k loan to help you achieve a 20% down payment could be to your benefit if you can afford to pay back both the loan and the new mortgage because it will help you avoid costly mortgage insurance.  It could also help you with closing costs so that you are not cashing out your entire savings right before you take on the potential hidden expenses of a new home.

In Short, The Math Always Wins.

A younger worker who has made a lot on stock funds in their 401(k) in recent years might want to temporarily tap that money to establish themselves as a homeowner.  Or, some workers closer to retirement might find themselves retirement-plan heavy with their eyes on a retirement home. To buy it, they might have to sell investments and eat a sizeable capital gains tax.

Read More: FINANCES | HOME BUYING TIPS |

PLEASE SEEK APPROPRIATE ACCOUNTING AND LEGAL ADVICE BEFORE MAKING YOUR DECISIONS. Make sure you understand the rules and risks before tapping your retirement savings to pay for a home.


Sources: 
http://www.msn.com/en-us/money/home-loans/should-you-tap-your-401-k-to-buy-a-house/ar-BB6Qmcl
http://www.kiplinger.com/article/real-estate/T010-C001-S001-borrowing-from-a-401-k-to-make-a-down-payment.html

Lower Your Mortgage Payment! [Making Home Affordable]

If you currently own a home, this post is for you!!

Would you like to lower your mortgage payment?
Would you like to reduce your interest rate?
Are you trying to avoid foreclosure?

You might be eligible for the official program of the Departments of the Treasury and Housing and Urban Development called Making Home Affordable!

Find out if there is a Making Home Affordable program for you here:

http://www.makinghomeaffordable.gov/get-started/finding-the-right-program/Pages/default.aspx

How Do You Get the LOWEST Mortgage Interest Rate?

What is the  SINGLE BEST WAY to get the LOWEST INTEREST RATES on your MONTHLY MORTGAGE PAYMENT?

Although it may seem obvious,  many people do not know that their credit score will dictate their monthly mortgage payment. The lower the score, the higher the payment.

Bad credit can cost you thousands, if not hundreds of thousands of dollars over the lifetime of your loan. Do not wait until you are trying to get qualified to take care of this vital piece of information, as it may be too late by that time to do anything about it.

Contrary to many beliefs you CAN raise your credit score in as little as 60 days. 

Many lenders have suggestions and programs. CONTACT ME for a list of lenders that may be able to help you get on track!

More Topics That May Interest You:

Search for Homes  |  Get A Mortgage  |  What is Your Home Worth?  |  Home Buying Help  |  Increase Your Appraised Home Value

Smart Homebuyers Are Locking In Ultra Low Rates Before The Fed Hike

Are you a smart home buyer?
By +Sarah Marrinan - Keller Williams Premier Realty 
The recent mini spike in mortgage rates has homeowners scrambling to save thousands over the next several years by locking in a rate today. Many homeowners are just now recuperating from seeing their home values plummet in the past, to finally seeing positive equity, so now is the time to take advantage of low-rate mortgages before rates begin climbing higher.

The Fed lowered short term rates several years ago to near zero in an effort to revive the economy. Now that we are seeing a recovery it's expected we will begin to see rates escalate to normal levels. Historically, rates on 30 year loans are usually between 5.50%-7.25% and higher. Below is the difference on a $200,000 mortgage for a 30 year term at an available rate today of 3.25% vs 6.75%.

What is more important? Credit Score or Down Payment?

So, is your credit score more important or the size of your down payment when it comes to getting a mortgage on a house?  

Let's take a look. You down payment determines your Loan to Value ratio.  Your LTV and credit score are primary factors in determining your mortgage qualification and the rate your will receive.

To demonstrate how Loan To Value and credit score impact APR, consider these three buyer profile scenarios.

• Jenny has managed to save up a sizable down payment of 30% on her dream home, but she has always paid for everything in cash and has no credit history so her credit score is only 635.  
• Amy has a good credit score at 745, but she only has enough for a 5% down payment.  
• John also has a credit score of 745 but has saved enough to put 20% down. 

Despite their very different profiles, Jenny and Amy would get nearly the same APR (4.98%) on their mortgage, indicating they pose equal risk to the mortgage underwriters. John, however, would get the best rate, nearly 60 basis points lower at 4.41%.
Assuming they have all have $1,000 per month for their monthly mortgage payment, Jenny would be able afford a house of $265,000; John a house of $250,000; and Amy a house of $195,000.

Want to see what your specific situation qualifies for? Contact Paul Johnston today!

Already qualified and ready to buy?  I'm here for ya' as always!

Should I ask the seller to pay my closing costs?

That depends.
In certain market segments, sellers are commonly asked to contribute to buyer closing costs. Generally, the guideline is that a seller can pay up to 3% of a buyer's closing costs (depending on the type of loan).

Keep in mind, that the seller still has a "net" price they choose to achieve and paying your closing costs directly reduces their bottom line therefore they may counter at a higher purchase price. Therefore, asking for closing costs may increase the actual price you pay for the home.
For example, if the home is offered at $200,000 and you offer 200,000 but also ask the seller to 3% in closing costs for you ($6,000), the seller would see a net of $194,000. If they are ultimately trying to receive $195,000 for the home, you may receive a counter offer of $201,000 and the agreement to pay those costs for you.

If they increase the purchase price to cover their closing cost contribution to the buyer this amount is (in theory) rolled in to the mortgage and paid out (with interest), over the period of the buyer's mortgage. If you have cash on hand, this probably doesn't make sense to you, but for buyer's who don't, it is a great way to leverage into home ownership and keep some money in savings for unexpected expenses in the first year of ownership.

Closing costs can include:
Attorney fees (if applicable)
Recording Deed
Survey
Inspections (Home, Radon, Termite, Mold, Chinese Drywall)
Insurance Policy
Flood Insurance
Well Test/Sulfur/Sodium
Proration of Real Estate Property Taxes
Proration of Maintenance Fees
Mortgage Title Insurance Policy
Service Fee or Origination Fee (if applicable)
Doc Stamps on Deed
Lender's Attorney Fees
Appraisal Fee
Assumption fee on existing mortgage
Intangible Tax
Recording Mortgage
Credit Report
Escrow Account (Taxes and Insurance)


Need help from a mortgage professional? Check out this guy to the right.  [Curt Smith, Bell Mortgage]

Or you can just call me... I know a lot of great mortgage professionals and I can connect you!

MORE READING:

The Hidden Costs of Buying Bank-Owned Homes

How to Save Money for Buying a Home

Major Considerations about Your Next Home

Pre-Approved or Pre-Qualified?

When a potential client calls for a loan, many banks just take some basic info about where you live and work and they may run a credit report.  They will then take a brief look to make sure that the income info provided offsets the monthly debt including the new house payment at an acceptable level (debt-to-income ratio).  This would constitute a basic pre-qualification.  This will help you to know what homes are comfortably in your price range.

Get Pre-Approved for Your Loan!

In order to know what price home you will get loan approval for you need to be pre-approved.  The pre-approval process is much more lengthy. (See here for details.)

Most people want to know the monthly payment when deciding what price range they will be looking in for a home and online loan calculators don’t tell the whole story. Your payment is impacted dramatically by your choice of a loan program, how much you have for a down payment, if you will need to pay mortgage insurance (for loans with less than 20% equity or down-payment) and the interest rate.

The financing you choose will often largely impact the homes you look at.  FHA and VA loans require properties to be in generally good condition.  Maybe you want to purchase a home you can renovate and so you choose a loan such as a 203k.

As part of the pre-approval process, the lender should give you a sheet showing all your lender fees in clear terms.   If the lender works closely with your real estate agent, any additional real estate fees can also be estimated upfront. This sheet should help you understand what your pre-paid expenses and closing costs will be so you can plan accordingly.   If you want to have the seller pay some of your closing costs (this is fairly typical) then your agent has to know what those costs are to properly formulate an offer.

Need a referral to a good lender?  Call me!


Need answers to your mortgage questions?  Click here: http://www.curt-smith.com/

Do This, Don't Do That

When it comes to buying a house, a list of do's and don'ts can help you get off on the right foot especially if you plan to apply for a mortgage.  Here are some basic dos and don'ts to help you stay on track with your home ownership plans.

Do This

● Do Pay Old Debts – The less debt you have, the easier it’s going to be to get a great mortgage. Paying down your debt as this is another area that a lender will look at if you don’t have a lot of capital to put down as collateral.
● Do Pay Off Early – If possible, don't ever make minimum payments. Adding a little extra every month to debt payments is a really good help when trying to get a mortgage in the future. This applies to existing mortgages as well. The quicker you can pay it off, the better.
● Do Show Evidence of Down Payment Savings – Though some loans will allow you to receive "gift funds" from a family member for your down payment, it is best to show you have acculated your own down-payment savings

Don't Do That

● Don’t Miss Payments – If you currently have a mortgage or any other type of loan, make sure you always make the payments on time. Car payments, credit card payments, school loan payments... it doesn't matter what type of loan it is, you need to pay on time every time.
● Don’t Overextend – Many people like to live beyond their means – i.e. spend more than they make – but this can quickly lead to problems. When getting ready to apply for a mortgage, make a household budget and practice sticking to it for six months before you apply. Use a "cash-only" system so you are not buying anything on credit.   By not overextending yourself financially, you can increase your chances of mortgage approval.

Want more mortgage advice?  I have have a handful of trusted mortgage professionals that would be happy to discuss your options and create a plan to get you the best possible loan terms for your situation.  Contact me now!